In a major move to boost the real estate sector and accelerate the clearance of new housing inventory, the Thai government has officially approved a substantial reduction in property transaction fees. The new policy lowers the fee from the original 2% to just 0.01% for properties priced at no more than 7 million baht (approximately 1.489 million RMB). Effective immediately and valid through June 30, 2026, the measure is expected to directly ease buyers’ financial burdens, invigorate market activity, and further solidify real estate as a strategic pillar of the Thai economy.
At the policy launch, Thailand’s Deputy Finance Minister Paopoom stated that the fee cut applies to a wide range of property types, including detached houses, townhouses, condominiums, street-facing commercial units, and related land plots. He noted that the Thai housing market is currently under inventory pressure, especially around Bangkok and in popular tourist cities, where new developments are experiencing sluggish sales. This policy aims to target mid-range and first-time homebuyers by lowering transaction costs and accelerating market turnover.
This new initiative continues Thailand’s tradition of using tax and fee reductions to boost the housing market. Historical data shows that similar measures introduced during the COVID-19 pandemic in 2020 led to a 15% year-on-year increase in transactions. Compared to previous policies, the current adjustment is even more aggressive—reducing transaction fees to nearly zero. For example, on a 7-million-baht home, buyers can save around 139,000 baht (approximately 29,600 RMB) in transaction costs.
Market observers generally expect the policy to attract three main buyer groups: local first-time homebuyers who will be encouraged by reduced costs; long-term investors seeking low holding costs and stable rental returns; and foreign buyers who can benefit from both favorable exchange rates and policy incentives. With the Thai baht remaining weak against the RMB, Thailand’s real estate market is becoming increasingly attractive to international investors.
In the long term, the investment rationale for Thailand’s real estate sector remains solid. As a major tourist destination in Southeast Asia, Thailand saw over 28 million international visitors in 2023, with projections reaching 35 million in 2024. In key tourist hotspots like Phuket and Pattaya, condominiums yield an average annual rental return of 5% to 8%—higher than most places in the region. Ongoing infrastructure upgrades, such as new railway lines in Bangkok and progress on the China-Thailand high-speed rail (Kunming–Bangkok segment), are expected to boost property values in emerging areas. Additionally, the Eastern Economic Corridor (EEC) continues to attract foreign investment, further stimulating housing demand.
Thailand also maintains relatively relaxed property ownership regulations for foreigners. Non-residents are allowed to own condominiums outright (up to 49% of a single project), and there is no capital gains tax. With supportive measures like the “Elite Visa” and “Long-Term Resident (LTR) Visa,” the country offers institutional backing for overseas buyers. Political stability and a controlled inflation rate between 1% and 3% also enhance the appeal of real estate as a safe-haven asset.
According to industry forecasts, this fee reduction policy could drive a 20% to 30% increase in nationwide property transactions in the second half of 2024. Sales in second-tier resort cities like Chiang Mai and Hua Hin are expected to improve significantly. Many developers have already launched matching promotional campaigns—such as installment-based down payments and free furniture packages—to further lower entry barriers.
However, market analysts also advise investors to be aware of the policy’s limited timeframe and the potential risk of oversupply in some areas. They recommend focusing on emerging locations with clear infrastructure plans and proximity to transport hubs, in order to reduce holding risks and improve asset liquidity.
Overall, industry insiders believe that Thailand’s latest round of fee cuts is not merely a short-term stimulus, but a reaffirmation of the strategic importance of the real estate sector. For international investors, this rare convergence of low transaction costs, a weak baht, and high rental yields may present a golden window to enter the Thai property market.
